Regarding Generally Accepted Accounting Principles (GAAP),which of the Following Statements

question 198

Multiple Choice

Regarding generally accepted accounting principles (GAAP) ,which of the following statements is incorrect?

• A) GAAP rests on a conceptual framework that identifies the objectives, characteristics, elements, and implementation of financial statements.
• B) The primary objective of financial reporting is to provide information useful for making investment and lending decisions.
• C) Relevant information is complete, neutral, and free from error.
• D) GAAP is currently formulated by the Financial Accounting Standards Board.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods within a certain period.

Times

Often refers to a multiplicative factor or frequency of occurrences within a specified period.

Accounts Receivable Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services provided on credit.

Inventory Period

The inventory period is the amount of time it takes for a company to sell through its stock of goods. This is a critical component of inventory management and cash flow analysis.